TM earnings marginally lower at RM301.4mil in third quarter


  • Business
  • Saturday, 01 Dec 2012

A file picture shows Menara Telekom. TM says its outlook for 2012 remains positive, driven by broadband and data services.

PETALING JAYA: Telekom Malaysia Bhd (TM) achieved a net profit of RM301.4mil, or 8.40 sen per share, for its third quarter ended Sept 30, marginally lower than the RM302.1mil, or 8.40 sen per share, posted in the same quarter last year after it made lower gains.

The incumbent fixed-line operator said in the previous year corresponding quarter that it had made a gain on the disposal of its stake in mobile operator Axiata Group Bhd shares amounting to RM283.5mil.

TM's revenue for the period under review stood at RM2.38bil against RM2.32bil earlier, driven mostly by higher data, Internet and multimedia services and other telecommunications-related services.

“TM's outlook for 2012 remains positive, driven by broadband and data services,” it said in notes accompanying its results announcement.

UniFi, which is its high-speed broadband service, had further expanded to the East Coast, TM said.

At present, it has about 2.05 million broadband subscribers with more than 462,000 UniFi subscribers, TM said in a statement, adding that it expected to maintain the momentum of increasing the subscriber base for UniFi with higher subscription of value-added Services such as HyppTV.

For the quarter under review, earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 1.8% year-to-date from RM2.29bil in the third quarter of last year to RM2.33bil this year, attributable to higher operating revenue.

Normalised EBITDA after adjusting for foreign exchange loss on international trade settlement was also higher by 1.7% due to higher revenue, it said.

The company also reported an improvement in capital and cost efficiencies, with its capex/revenue ratio reducing from 21.2% last year to 19.8% this year.

For the nine months to Sept 30, TM's net profit stood at RM900.5mil, or 25.20 sen per share, compared to RM592.7mil, or 16.60 sen per share, for the same period in 2011.

This was due to the higher revenue, recognition of deferred tax income on unutilised tax incentives and higher unrealised foreign exchange gain on foreign currency borrowings in the current year period, partially offset by lower other gains.

Its revenue for the nine-month period reached a record RM7.2bil against RM6.7bil last year on the back of continued momentum across all key products Internet and multimedia, data and other telecommunications services product lines.

An Alliance Research telco analyst said TM's results were within expectations, making up 74% of its full-year forecast for the company.

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